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Strategic Management Report in Vodafone Group

   

Added on  2020-04-15

8 Pages2158 Words89 Views
Running Head: strategic management Strategic Management

Strategic management Introduction Vodafone Group is a mobile telecommunication company. The company is present in Europe, Africa and also in the United States. The company started the operations in 1984, and now it is known as one of the world's leading mobile telecommunication company. Vodafone is the market leader by taking into considering the current operations. The company offers effectiveservices so that the company can easily survive in the competitive environment. Vodafone is usually selling the product and services on prices and promotion. The market trends are followedby the company, so that the profitability can be enhanced easily. Vodafone is one of the major global providers of telecommunication services. The company has a strong presence in the Germany, Spain, and Italy. The global reach of the company is in more than 38 countries. The company offers various ranges of mobile services like voice, data and roaming services to the customers and business enterprises. Vodafone has a strong network infrastructure that consists of2G and 3G networks. The activities are conducted over GSM and GPRS network standards. The networks enable the group to offer high-speed data services.Vodafone Group is one of the British multinational telecommunications company headquartered in London. The Vodafone owns and operates in 21 countries and has partner networks in over 40 countries. The company consists of 92,812 employees worldwide. The mission of the company is that "The Company will be the leader of the communication and it is connecting world".(Source : Vodafone,2017).

Strategic management Five forces analysis of Vodafone Porter five forces analysis is a framework to evaluate the level of competition within an industry and business strategy development is also taken into consideration. The porter five forces analysis consist of: a.)Bargaining power of consumers – High b.)Bargaining power of suppliers – medium c.)Threat of substitutes – high and medium d.)Threat of entrants- low e.)Industry rivalry- high Bargaining power of consumers Buyers often demand more and also they want the offers that can be easily available at the minimum cost. This gives direct pressure on the company profitability in the long term. If the customer base is smaller and more powerful, then Vodafone can easily attain higher bargaining power of the customers and also the discounts and offers are given more (Mittal, Han, Lee, Im and Sridhar, 2017). The buyer in the Telecommunication industry is strong. The powerful buyerscan easily minimize the cost leader prices. This helps the Vodafone Company to attain profit at above-average returns as compared to its closest competitors. The buyer power gives direct impact on reducing the cost of prices in the industry by taking into consideration the competitors.If the company keeps reasonable profits, then it can be easy to attain profitability (Diaz, Perea and Gutierrez, Vodafone Group Plc, 2015). So, Vodafone will keep reasonable profits as compared to the competitors. The bargaining of the consumers can be handled in many ways like: The Company can easily build a large base of the customers so that many opportunities can be given to the firm. By increasing the innovative product, the company can easily often seek discounts, so that the company can easily come up with varieties of the products and services. New products and services will minimize the defection of the existing customers of the Vodafone (Abd-El-Salam, Shawky and El-Nahas, 2013).

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